SK Engineering & Construction (SK E&C) will enter the Iranian energy market first along with winning a 3.4 billion euro (US$4.2 billion) worth project to build five combined gas-fired power plants by forming a team-up with a Turkish company.
The Korean builder SK E&C announced on March 7 that it signed a contract in Istanbul to purchase a 30 percent stake in UNIT International S.A., Turkey's energy giant, to secure the right for the Iran project and carry out the project jointly.
Under the contract, SK E&C will join the Turkish firm's ongoing project to build and operate five new combined gas-fired power plants in Iran.
The power plants to be built in five regions will have a combined generation capacity of 5,000 megawatts, making them Iran's largest privately developed power plants.
South Korea’s Land, Infrastructure and Transport Minister Kang Ho-in, who attended the contract ceremony, said, “I hope SK E&C’s participation in the Iranian energy project be a monumental work for the future’s infrastructure cooperation with Iran, “ adding, “The Korean government also shall support the project to be implemented successfully.”
SK E&C start building two power plants first next year, a 1200MW plant in Savah and another 880 MW one in Zahedan, and then continue to build the remaining three plants successively. The construction period is 30 months, aiming at a commercial operation in the second half of 2020.